Million barrels of oil in fire danger zones | Alberta Fire 2023

Of the estimated production volume for May, 60% is currently in severe fire risk areas, while the remaining 40% is in very high risk areas, the agency added.

Rystat energy It estimates that the impact could exceed 300,000 barrels of oil equivalent per day, if not.

Too early To assess impact

In an emailed statement, Jay AverillA spokesperson for the Canadian Association of Petroleum Producers said rapidly changing weather conditions are creating conditions It is very difficult to quantify the overall impact on the industry.

As the situation is still changing, it is too early to estimate the overall estimated costshe said.

Several facilities were affected, some in close proximity to the fires and others following precautionary and evacuation orders, he said.

Smaller companies than those affected in 2016

The Toronto Examiner Rory JohnsonEnergy expert and founder of the newsletter Inventory environmentHe said the companies affected by the fire were much smaller than the larger oil sands companies. Fort McMurray In 2016.

Charles St. Arnaud, senior economist at Alberta Central Financial, agrees. It won’t be as bad as the 2016 fire in Fort McMurray.He argues.

Most of the fires are in the western part of the province […] Then yes, […] There is a decrease in production, however, if you look at the production figures in Alberta, the majority of the volume is coming from the Fort McMurray area and further south, towards Cold Lake, which is an unaffected moment. So there will be a negative impact on productivity, but it won’t be a big deal.He explains.

The event led to a temporary 14% drop in crude oil exports from Alberta, as oil sands facilities had to be taken out of service and took months to fully restore.

Rory Johnson However, while oil and natural gas prices have not yet been greatly affected by the situation, the second quarter results of the affected companies are likely to decline as the current fire situation drags on for longer.

My overall feeling is that while it may not be important to the market yet, it may be important to some of these producers.he said.

He added that increased wildfire activity in the coming years will add further volatility to Canada’s energy sector. Forest fires are becoming a perennial and unpredictable threat to the sectorfinished Rory Johnson.